Scholastic Corporation to Repurchase Up to $75 Million of Shares in Modified Dutch Auction

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Scholastic Corporation ($NASDAQ:SCHL), an education and media company, surged about 12% after it announced a modified Dutch Auction tender offer to repurchase up to $75 million of shares. Under the offer, the shares will be bought back at a anticipated cash price per share of between $35 and $40, without interest and minus any applicable withholding taxes. Scholastic Corporation is a publicly traded company listed on the NASDAQ Global Select Market under the ticker symbol SCHL. The Company’s portfolio of assets and businesses includes Scholastic Education, Scholastic Trade, and international businesses.

Price History

On Monday, shares of Scholastic Corporation opened at $38.1 and closed at $37.1, representing a 10.4% increase from the previous day’s close of $33.6. The news was met with mostly positive sentiment from investors, as the company’s stock has been underperforming in recent years. This repurchase program represents a vote of confidence from management in the future of the company. Despite its strong track record, Scholastic’s stock has been under pressure in recent years due to declining sales and earnings.

The company has been working to turnaround its business by investing in new initiatives and cutting costs. The announcement of the share repurchase program is a sign that management is confident in the future of the company and believes that the shares are undervalued. This confidence could lead to more positive sentiment from investors and help Scholastic Corporation’s stock price recover.

VI Analysis

SCHOLASTIC CORPORATION is a medium risk investment in terms of financial and business aspects, according to VI Risk Rating. The company’s fundamentals reflect its long term potential. However, VI App has detected 3 risk warnings in income sheet, balance sheet, and non financial aspects. Register on vi.app to check it out.

VI Peers

The company was founded in 1920 and is headquartered in New York City. Scholastic operates in the United States, Canada, Australia, New Zealand, the United Kingdom, and Ireland. The company’s primary competitors are Hanoi Education Investment And Development Joint Stock Co, Sasbadi Holdings Bhd, Educational Book JSC in Ho Chi Minh City.

– Hanoi Education Investment And Development Joint Stock Co ($HNX:EID)

Sasbadi Holdings Bhd is a provider of educational resources and solutions in Malaysia. The company offers a range of products and services, including textbooks, workbooks, e-learning solutions, and professional development services. Sasbadi Holdings Bhd is listed on the Bursa Malaysia Stock Exchange and has a market capitalization of 46.7 million as of 2021. The company has a Return on Equity of -5.29%.

Summary

SCHOLASTIC CORPORATION is a publicly traded company with a history of strong financial performance. SCHOLASTIC CORPORATION’s business is centered on children’s books and educational materials. The company is the largest publisher and distributor of children’s books in the world, with a particular focus on the K-12 market.

In addition to its publishing operations, SCHOLASTIC CORPORATION also operates a large direct-to-home book club business and a growing digital education business. SCHOLASTIC CORPORATION’s strong financial performance and favorable business prospects make it an attractive investment option for growth-oriented investors.